Biofuels help energy consumers reduce their carbon footprint. Yet myths about them persist. So, what’s true and what’s false?
Energy choices have never been more important. We consume 4.5 billion tonnes of fossil oil globally every year. Around a quarter of that is for transportation, and millions of rural, off-gas-grid households still rely on oil for heating. The choices we make now about how we fuel our cars, trucks, businesses and homes will be a key factor in how quickly the world reaches net zero 1.
DCC Energy has accelerated its bio roll out – making biofuel and biogases available to customers to help them reach their emissions reduction targets more quickly.
DCC Energy supplies several biofuels, among which is hydrotreated vegetable oil (HVO) – a second-generation biofuel that makes a convenient, drop-in alternative to fossil diesel.
As part of our strategy to double our profits and halve the carbon emissions of our customers by 2030, we aim to replace £30 million of our traditional fossil oil-based profits with £40 million from biofuels. Given that 72 per cent of our profits arising from the energy we provide to customers is currently fossil-based, 2 HVO will be a key part of the journey.
Second-generation renewable fuels like HVO are often misunderstood, especially when they’re confused with first-generation conventional biodiesel (FAME) or with biofuels produced from food such as soy or sugar cane.
Sounds complicated? Don’t worry, help is at hand. Read on for the facts behind five common biofuel myths:
Myth 1: Biofuels aren’t widely used and will never be a significant replacement for fossil fuels.
Fact: We’re at the start of a biofuels boom. The fastest growing segment is renewable diesel, which analysts forecast to triple 3 over the next five years.
In 2019, renewable fuels replaced just four per cent of all fossil fuel used by transportation around the world. By 2040, forecasts suggest biofuels will replace 40 per cent of today’s oil consumption for transport – although a significant percentage of that will be in maritime and aviation 4 where DCC’s business is small.
In countries where there are incentives like clean fuel production tax credits and grants, production is soaring. The USA’s landmark Inflation Reduction Act 2022, for example, has given the American biofuels industry a significant boost.
Many commercial fleets have already begun the switch to biofuels. Regulatory obligations on fuel suppliers to increase the mix of biofuels in petrol and diesel, with reduced energy taxes at the pumps in some locations, have also contributed to a steady reduction in the carbon intensity of transportation fuels in parts of Europe and the US. This is the direction of travel globally – it’s likely that trucks and the minority of legacy cars still on the road in decades to come will run on low-carbon biofuels.